You just know I am smiling today. My Hedgeyes like winning.
In the face of plenty a perpetual bull pleading their valuation case, the Spanish Spoo crew is crying the SPY’s a river out there today. Global Risk Management doesn’t occur in a vacuum. From a crash in sovereign debtor nations to a TREND line breakout in both volume and volatility, the risks are clear and present in the rear-view.
Critically, the SP500 has broken its immediate term TRADE line again today (1193). We have an immediate term lifeline of support down at 1173, and the intermediate term TREND line of support is -2.6% lower from there.
Just to antagonize the bulls, we might cover, get long, and get more bullish than they were at 1217.
Maybe not. May’s Showers are in motion.
Keith R. McCullough
Chief Executive Officer